Explain delay in Cairn: FinMin to Oil Ministry

Sources told CNBC TV-18 that the Finance Ministry has written to the Oil Ministry on impediments to large project executions.

The Cabinet Committee on Economic Affairs (CCEA) will mull issues related to impediments in executing projects, the sources told the channel.

In the letter, the Finance Ministry told the Oil Ministry to explain the delay in giving nods for the Cairn investment project in Rajasthan, the sources revealed. It asked the Oil Ministry to ensure that the decision on Cairn proposal is not delayed.

Meanwhile, CNBC TV-18 found out that Cairn is seeking nods for further exploration since December 2011.

 Explain delay in Cairn: FinMin to Oil Ministry

The Cairn project in process. Reuters

Sources said that Vedanta's Navin Agarwal met Department of Economic Affairs Secretary Arvind Mayaram to discuss Cairn.

Agarwal met Mayaram on August 14 and wrote letter on August 17, ministry sources told CNBC TV-18.

Vedanta told the Finance Ministry to realise the potential of the project and that Cairn's Rajasthan field needs $10 billion more investment. It told the Finance Ministry it is fully committed to supporting such investment by Cairn India.

Vedanta told the Finance Ministry to give its nod for further exploration to support 300,000 bpd production.

Updated Date: Dec 20, 2014 11:40:04 IST